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CBOT wheat closes lower as crop concerns dim a bit

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower Friday, sinking amid beliefs that moisture this week in the US Plains wheat belt will bring some relief from dry conditions.

CBOT wheat closed 1/2 to 3-3/4 cents lower, with March down 3-3/4 at $2.59-3/4.

Several inches of snow fell over the central and southern Plains over the past few days, Weather Services Corp. said Friday, with 6 to 12 inches in portions of central and northern Oklahoma and some ice in southern Oklahoma through northern Texas.

Traders said the snow should improve the outlook for the winter wheat crop, which has suffered from below-normal precipitation since seeding last fall. But Weather Services cautioned that this week's snowfall would not be enough to completely alleviate problems from dryness.

"Snow and ice occurring over the region will provide some moisture when it melts, but more precipitation is needed to significantly improve the outlook for the crop," Weather Services said.

The Texas crop was in poor condition, seedling death from dry weather remained high and planted wheat had not emerged in some fields,

The US Department of Agriculture's weekly export sales report came out consistent with expectations for wheat. Net US wheat sales during the week ended Jan. 20 were 288,000 tonnes, within the range of estimates from 150,000 to 400,000 tonnes but 15 percent above the four-week average, according to the USDA.

Funds sold 1,500 lots. Goldenberg, Hehmeyer & Co. sold 1,500 March, Salomon Smith Barney sold 500 March, DT Trading sold 400 March and Merrill Lynch Futures bought 400 March, traders said.

CBOT wheat futures volume was estimated by the CBOT at 17,500 lots, below the 37,636 lots traded Thursday.

Wheat options volume was estimated at 3,000 lots.-Reuters